, Columnist
What Gas Crisis? Europe’s Best Friend Is Also Its Worst Enemy
High prices do solve high prices. But always there’s a cost.
Fire it up.
Photographer: INA FASSBENDER/AFPThis article is for subscribers only.
In the doldrums of August, the European natural gas market has perked back to life. The risk of strikes in Australia, the world’s largest producer of liquefied natural gas (LNG), was enough to send prices up 50% at one point. Coming weeks before the Oct. 1 start of the heating season, the price jump certainly is concerning. However, don’t panic yet.
First, the risk was merely that — a risk. Wage negotiations are progressing, and the disruption will probably be avoided. As the danger has receded, so have prices. But, more importantly, Europe has an even stronger ally to keep gas prices under check heading into the colder months: extremely weak demand.